ECONOMICS

Detailed explanation-1: -Stock verification is done by actual counting, weighing and measuring of items in stock which is necessary to support stock value as per ledger balance.

Detailed explanation-2: -Stock verification sheet is also known as stock taking methods, stock assessment methods, stock verifying methods, Inventory Management methods and variance analysis methods.

Detailed explanation-3: -Stock Verification means to verify that the material is as per the details, specifications and balance quantity as mentioned in the material register/record. In other words tallying the Up-to-date Book balance with the Actual physical balance of the Material is called “Stock Verification”.

Detailed explanation-4: -The stock audit process is necessary to reduce the avoidable investment on stocks or inventory to ensure proper balance in the process. As high levels of stock result in overstocking which may result in the poor value of cash flows and financial losses.